Tether reports DDoS attack as the exodus from USDT continues

By Raffaele Redi
• Updated

Stay up to date with the latest Tether (USDT) news as it happens

Tether logo, showing a letter T in white on a green hexagon, displayed on a mobile phone screen                                 
USDT, issued by a Hong Kong-based company called Tether Holdings, is the most popular of stablecoins – Photo: Shutterstock
                                

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The issuer of the USDT stablecoin, Tether, suffered a distributed denial of service (DDoS) attack at the weekend – and was sent a ransom demand to stop more from happening, according to Tether’s chief technology officer Paolo Ardoino.  

According to Ardoino, the Tether website was bombarded with eight million requests in five minutes on Saturday 18 June.

“This morning Tether received a ransom request to avoid mass DDoSes. They tried already once. On a normal day we have around 2,000 requests every five minutes. The attack brought us to eight million requests every five mintues.” Ardoino added that the “attack is now mitigated”. 

In addition, the stablecoin has reported a $4bn withdrawals over the past seven days, according to CoinMarketCap data, with the market cap of the USDT stablecoin falling to $67.8bn.

Tether (USDT) was trading at $0.9987. USDT trading volume was down around 16% at $56bn.

Prices are correct as of 08:00 BST (UTC +1).

16 June 2022: USDT market cap falls below $70bn as Tether liquidates Celsius

Withdrawals continue to hit the most popular stablecoin, Tether (USDT), despite the company claiming to have “liquidated Celsius position with no losses to Tether”.

“Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company,” said developers of the USDT stablecoin, whose market capitalisation fell to $69.9bn after withdrawal of approximately $1bn was witnessed over the past 24 hours.

In a note to investors that condemned “false rumours” about presumed Asian commercial papers within the Tether portfolio, Tether also said that its current portfolio of commercial paper has been reduced to $11bn, from $20bn at the end of Q1 2022. They claimed it would be $8.4bn by the end of June 2022.

“It will gradually decrease to zero without any incurrences of losses. All commercial papers are expiring and will be rolled into US Treasuries with a short maturity,” they said.

According to CoinMarketCap, Tether (USDT) was trading at $0.999 while trading volume was $83.2bn up by 23.1% over the past 24 hours.

All values are correct as of 8:00 BST (UTC+1).

15 June 2022: Investors seek refuge from volatility through Tether

Investors in Ethereum (ETH) are buying stablecoins, in particular Tether (USDT), to seek a refuge from market volatility risks, according to Glassnode, the crypto market data and intelligence platform.

Glassnode data shows that despite some withdrawals, which brought the USDT market cap to around $70.7bn, Tether recorded a $1.1bn inflow, more or less corresponding to Ether outflows.

The data also showed that the number of ETH addresses in loss, on a seven-day moving average, just reached an all-time-high of 38 million, while Ether dropped to the $1,100 level, recording a 38% loss over the past week, according to CoinMarketCap.

Tether (USDT) is changing hands at $0.9987, while USDT trading volume was at $67.5bn, down by 40%, CoinMarketCap said.

Values are correct as of 08:15 BST (UTC+1 on 15 June).

14 June 2022: Celsius: Tether assures market as USDT pays $1bn withdrawals

Tether (USDT) has paid out around $1bn withdrawals over the past 24 hours as the Celsius (CEL) crisis unrolls, and despite Tether’s developers assuring investors after the DeFi lending giant halted withdrawals.

“Tether lending activity with Celsius, as with any other borrower, has always been overcollateralized and has no impact on our reserves,” Tether developers said in a note to USDT investors.

“The recent events impacting the Celsius lending platform and its native token CEL are an unfortunate result of market volatility and extreme market conditions,” they added.

“While Tether’s investment portfolio does include an investment in the company, representing a minimal part of our shareholders' equity, there is no correlation between this investment and our own reserves or stability.” 

On the crypto market, according to CoinMarketCap data, Tether (USDT) lost around $1bn in market capitalization over the past 24 hours. Early in the morning of J14 June, USDT’s market capilatisation was $71.5bn, while trading volume was 50% higher at $113.7bn.

The selling pressure caused the most popular stablecoin to de-peg from the US dollar to $0.9987.

All values are correct as of 7:45 BST (UTC+1).

31 May 2022: Tether capitalisation hits 2022 low as USDT launches on Polygon

Tether’s market capitalisation continues to decrease as Tether Operations Limited, the company issuing the USDT stablecoin, paid out a $700m withdrawal on Friday 27 May, bringing Tether's market cap to its lowest point in 2022, $72.5bn, according to CoinMarketCap data.

The move anticipated a report from the Financial Times claiming that the controversial stablecoin issuer Tether has relied on a bank in the Bahamas to store some of its reserves.

The company also recently launched its USDT stablecoin on Polygon, the popular “layer twoÆ scaling solution running on the Ethereum blockchain and supporting several stablecoins.

Tether’s developers said: “Tether is set to play an essential role in supporting Polygon’s DeFi ecosystem. It will alleviate the potential adverse effects associated with market volatility by providing a stable currency for investors to generate yield, and move in and out of the network,”

According to CoinMarketCap, Tether (USDT) is changing hands at $0.9994. USDT market cap was $72.5bn while trading volume was at $66.5bn, 55% higher over the past 24 hours.

Values are correct as of 8:00 BST (UTC+1).

27 May 2022: MXNT: Tether launches stablecoin pegged to the Mexican peso

Tether Operations Limited launched a new Tether stablecoin (MXNT) pegged on a one-to-one basis to the Mexican peso (MXN) to dive into the multibillion-dollar Latin American remittances market.

MXNT, currently running on Ethereum, Tron, and Polygon blockchains, will join the US dollar-pegged USDT, alongside other fiat-currency pegged tokens Tether has in the market, such as the euro-pegged EURT, and the offshore Chinese yuan-pegged CNHT.

Paolo Ardoino, CTO of Tether, said: “We have seen a rise in cryptocurrency usage in Latin America over the last year that has made it apparent that we need to expand our offerings.

“Introducing a peso-pegged stablecoin will provide a store of value for those in the emerging markets and Mexico in particular. MXNT can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies.” 

According to data from the cryptocurrency payments company Triple A, 40% of Mexican companies were looking to adopt blockchain and cryptocurrencies but only 2.5% of Mexicans owned cryptos in 2021.

Tether (USDT), which seems to re-peg gradually after the UST crash saw Tether to pay out around $10bn in withdrawals, is changing hands at $0.9991. USDT’s market cap was $73.2bn while trading volume was at $78.3bn higher by 56% over the past 24 hours.

On the ForEx, the pair USD/MXN is trading at 19.7450, almost flat over the past 24 hours.

Values are correct as of 08:00 BST (UTC+1).

23 May 2022: Withdrawals from Tether continue as digital assets remain in reserves 

Tether (USDT) issuer, Tether Holdings, has paid out $1bn in withdrawals since its latest independent accountant’s report, with withdrawals amounting to $10bn since the beginning of the crypto turmoil sparked by the depegging of terraUSD (UST).

The accountant’s report, which examines Tether’s reserves for the period up to 31 March 2022, showed that digital assets in Tether’s reserves remained stable over first quarter of 2022. Other investments, including digital tokens, amounted to $4.9bn, compared with a little more than $5bn for period ending 31 December 2021.

In a statement, Tether said it has reduced its commercial paper holdings by around 17% to $20.1bn for Q1 2022 – and has continued this with a further 20% reduction since 1 April, which will be reflected in its report for the second quarter of 2022. Tether’s reserves also witnessed an overall increase in US treasury bills as collateral – up more than 13% to $39.2bn for Q1 2022 from $35.4bn for the previous quarter.

According to CoinMarketCap, Tether’s market cap fell by $1bn after the publication of the latest accountant’s report last week. Since the beginning of May, its market cap fell by $10bn to $73.2bn, its market cap as of 23 May. USDT was changing hands at $0.9992 while trading volume was at $46.8bn, up by 27% over the past 24 hours.

Values are correct as of 11:00 BST (UTC +1).

20 May 2022: Tether cuts USDT holdings in commercial securities by 17%

The USDT stablecoin issuer, Tether Holdings Limited, reduced its commercial paper holdings in Q1 2022 by 17% to $20.1bn from $24.2bn over the prior quarter, the company said, adding that it intends to reduce the amount of collateral in these assets by a further 20% in Q2 2022

An audit report from the accounting firm MHA Cayman said the company also witnessed a 13% increase in tgroup investments in money market funds and US treasury bills , up to $39.2bn from $34.5bn.

Secured loans have gone down by $1bn, while the average rating of commercial paper and certificates of deposit went up from A-2 to A-1. Other investments, including digital assets, amounted to $4.96bn. Consolidated total assets came to to $82.4bn, almost equaling liabilities.

Paolo Ardoino, Tether’s CTO, said: “This past week is a clear example of the strength and resilience of Tether. Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honour a redemption request from any of its verified customers.”

According to CoinMarketCap, Tether (USDT) was changing hands at 9:30 BST (UTC +1) at $0.9992, having stayed almost flat over the past 24 hours. USDT’s market cap was $74.1bn, while trading volume was $60.35bn up by 2.15% over the previous 24 hours.

19 May 2022: Stablecoin Tether loses $9bn capitalization in a week  

Tether (USDT), the most popular stablecoin, lost $9bn of capitalisation in a week while slightly de-pegging from the $1 level, according to CoinMarketCap data.

On 18 May 2022, USDT’s market capitalisation, still the largest for any stablecoin, fell to $74.1bn from the $83bn witnessed on 11 May 2022, after the catastrophic collapse of TerraUSD (UST), which brought the value of the algorithmic stablecoin close to zero and triggered turmoil in the crypto market.

“The implosion of Tether is closer than ever”, according to analysts at Crypto Whale, known for criticizing Tether in the past.

Tether developers recently claimed that there has been some selling pressure on USDT on the market, after the UST crash.

They wrote: “Since 2015, Tether has never failed to process a redemption request for USDT at a value of $1 per USDT token. On the open market, USDT has almost never deviated from that price as well, although there are a handful of short-lived instances where it did deviate on exchanges like Binance.”

As of 8:30 BST (UTC+1,) on 19 May, USDT was trading at $0.9989 while the trading volume was at $58.3m, 6.6% higher over the previous 24 hours.

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